https://issuesinsights.com/2023/06/01/how-to-defund-the-irs-top-10-reasons-for-a-national-sales-tax/
Let’s pick up where our IRS-defunding I&I editorial board brethren lately left off: “There is … a better way to fund federal operations. Move to a single-rate income tax paid monthly with no deductions and no withholding, or implement a national sales tax.”
This commentator chooses National Sales Tax for several trillion dollars, Alex. While he has engaged in many exercises to explain why that levy solves a whole range of problems, here are some highlights in Lettermanesque fashion – the Top 10 Reasons for a National Sales Tax:
10. Keep it simple, stupid! Flat tax or no, the biggest problem with an income tax: it’s on income. The complexity and intrusion relates to determining what is and isn’t, and tracking, income.
Uncle Sam gets to snoop on hundreds of millions of taxpayers to make sure you’re not hiding income. Admittedly, for most taxpayers calculations get simpler without deductions, exemptions and the like. But eliminating withholding would only increase demands for government to stick its nose into your business to ensure you’re not getting money under the table. Especially for the self-employed.
Even many employees get income from multiple sources, including savings and investments. The revenooers want all those records, plus taxpayers will also have to pay monthly to account for non-payroll sources. Who’s going to tell them how much? Certainly not the IRS. Citizens will overpay to be safe, still being stuck with near-compulsory overcharges.
Moreover, what about the corporate income tax? Twenty-seven million private companies generate billions of calculations and pages of required record-keeping. Will that tax also be flat? Gucci Gulch is guffawing.
A sales tax? One number for companies: percentage of sales. For consumers? No record-keeping, filing, or engaging professional help to pay a bill for a service. And no spying on individuals or companies other than sales income.
9. Jobs, jobs, jobs. The second reason taxing income (and payrolls) stinks: your government taxes work and hiring. While paying people not to work. Madness.